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-   -   Liquor Store Ownership (https://www.thehulltruth.com/dockside-chat/409595-liquor-store-ownership.html)

CurtRusher 03-05-2012 07:07 PM

Liquor Store Ownership
 
Anyone here have any experience with (or know someone who owns) a retail liquor store?

Is it profitable? What are the major pros and cons.

I'm sure there is a lot to deal with in terms of licensing, theft, and regulations but what I have read so far there seems to be a lot of folks doing well with them.

I completed a search here before posting but couldn't find a similar thread.

tprice 03-05-2012 07:13 PM

Key is location and inventory

Budget 03-05-2012 07:36 PM

Biggest issue is dealing with the drunks! My friends dad has two stores. Drunk violence, drunk theft, drunk assault. It's not a walk in the park and not meant for everyone.

LI Sound Grunt 03-05-2012 07:42 PM

I suspect it varies drastically State to State. In CT you have to compete with the big grocery stores even though there are minimum price and open hour restriction protections. There is a very effective lobby, but bottom lone is its one of the few Mom and Pop stores left and even though Sunday closures violate the church state thing most people here feel saving local mom and pop business is more important. Varies though depending on local issues. research it thoroughly and listen to the NC folks.

cgrand 03-05-2012 07:46 PM

liquor stores are nearly extinct down here, unless they are primarily a wine store
you can get just about enything you want at the gas station convenience store, 24/7

snapperkid 03-05-2012 07:48 PM

I've had a liquor store since 1977. The margins are very slim. Theft by customers as well as employee's is becoming more of a problem every year. If you don't cash payroll checks, don't even bother.

Cracker 03-05-2012 07:49 PM

I smell a THT group buy in the future ... : )

08087 03-05-2012 09:30 PM

I'd imagine a higher end store in a high end area would do away with some of the homeless problems. I love how they never rob butcher shops, too many knives around!

iFly 03-05-2012 11:00 PM

We have many liquor stores like, most communities. Even had a family member who bought into one in a quiet part of town, after retiring. We also have a famous discount liquor store in the worst part of town. But..... all the employees are required to come strapped. NEVER had a robbery. They carry open and 'in your face'. There is no question that any trouble will be dealt with on the premises by all employees. Once I got past the initial surprise... I feel more comfortable buying liquor there than in many of the other liquor stores. But, mainly, they have the best prices. I guess they don't have to cover much theft loss. ;?

Meltron 03-05-2012 11:29 PM

If you can look past DEPENDING on selling to drunks everyday then you could probably do ok.

10 years ago I worked at a liquor store, the exact same 40 people would walk in at the same time, and buy the same thing everyday.

An 85 year old lady would buy 3 40's of Busch everyday, pretty funny, not really though...

Good luck.

CLang 03-06-2012 04:11 AM

with low margins and somewhat steady clientele I would think ownership would be like that of a franchise or restaurant.....ya need to own more than one to make serious cash...I agree with the check cashing thing....take like 3-5%...Location would be key in most areas (except Louisiana, cus we don't need em) and all your cashiers would have to possess a CCW.

LI Sound Grunt 03-06-2012 04:47 AM


Originally Posted by cgrand (Post 4423215)
liquor stores are nearly extinct down here, unless they are primarily a wine store
you can get just about enything you want at the gas station convenience store, 24/7

Wow - some gas stations can sell beer here but not Liquor. In Maryand they actually have drive thru liquor stores. NJ has combination liquor store/bars. In PA when I lived there they had State Stores for Wine and Liquor and you buy beer at certain bars and beer distributers.

Gator56 03-06-2012 05:14 AM

Here's all the infor you need maybe:
http://www.howtobuyaliquorstore.com/view.html

THT Mod 2 03-06-2012 07:12 AM


Originally Posted by CurtRusher (Post 4423066)
Anyone here have any experience with (or know someone who owns) a retail liquor store?

Is it profitable? What are the major pros and cons.

I'm sure there is a lot to deal with in terms of licensing, theft, and regulations but what I have read so far there seems to be a lot of folks doing well with them.

I completed a search here before posting but couldn't find a similar thread.

I am a silent partner in one. Rhode Island is very different than mosts states in that it is a closed state. What the means is that gas stations, covenience stores, supermarkets, Walmarts, etc. cannot sell alcohol of any kind.

Also, you cannot have an interest in more than one store.

Jurisdictions have limited licenses, meaning you either need turnover in a license or buy an existing location

To that end, legislation and regulation keep competition out, but at the same time keep a very fragmented market with all mom and pop locations.

Because of the aforementioned, margins are ridiculously high for the owners (think about it, the very market set up is a recipe for price collusion).

Here stores are limited in what non alcohol products they can sell - lottery is the biggest. Lottery covers the overhead plain and simple.

Pros - cash flow, limited competition, very stable market

Cons - barriers to entry are high - translation $$$$ to get in the game, low market growth - its a value business, not a growth driver - if you overpay upfront, you will never get your return back, government relations effort - you want to keep competition out, you need a strong lobby.

Licensing is a pain, but doable. Theft is very really - and occasionally the theft will happen from a non-employee.

The partner I back works the store every day - without someone with a vested interest on location - forget about it, your employees will rob you blind.

My advice to you is do your due diligince on your market. Determine your target location. Then, go 15-30 miles outside of it and start talking to store owners. Be upfront with them, tell them you are looking to get in the business outside of their market. You will find some that tell you to pound sand, and some that will be very open to you (you are not competition).

Want to know more, just ask.

fichtion 03-06-2012 07:17 AM

I imagine long hours as you would need to be on site in order to keep control on the $$ and the inventory.

Otherwise, you will lose your shirt.

Dulcecita Lures 03-06-2012 08:32 AM

Liquor is so old school. I'm gonna open a marijuana "pharmacy." :rofl:

cgrand 03-06-2012 08:37 AM


Originally Posted by LI Sound Grunt (Post 4423635)
Wow - some gas stations can sell beer here but not Liquor. In Maryand they actually have drive thru liquor stores. NJ has combination liquor store/bars. In PA when I lived there they had State Stores for Wine and Liquor and you buy beer at certain bars and beer distributers.

we go one better...drive thru daiquiri shops!

Deriso 03-06-2012 08:43 AM


Originally Posted by cgrand (Post 4424170)
we go one better...drive thru daiquiri shops!

Drive thru daiquiri shops!!

UT_VOLS13 03-06-2012 09:11 AM

I NC ABC stores are not individually owned.


http://abc.nc.gov/faq/category.aspx

dgixxer252525 03-06-2012 10:46 AM

Or come to Florida and be a legal oxycontin pusher!


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